Australia tightens control over cryptocurrency ATMs due to escalating scam incidents

Australia tightens control over cryptocurrency ATMs due to escalating scam incidents

Sound the Alarm: Crypto ATM Scams Plague Australia, Leaving Seniors Vulnerable

The financial landscape in Australia is facing a new challenge with a surge in crypto ATM scams draining wallets across the nation, with losses amounting to A$3.1 million (US$2 million) since January 2024. Reported cases of these scams have been steadily rising, with 150 people filing unique reports with ReportCyber over the past year.

New Rules Crack Down on Crypto ATM Operators

In response to the rising tide of crypto ATM scams, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has introduced a series of new regulations for operators of these machines. As of June 3, cash deposits and withdrawals at crypto ATMs are now capped at A$5,000 (US$3,250). Moreover, operators are now obligated to display clear scam warning signs, increase transaction monitoring, and bolster customer verification procedures.

These new measures are focused primarily on crypto ATM operators, but AUSTRAC has hinted that crypto exchanges may be asked to follow suit if they allow customers to deposit cash in exchange for cryptocurrency. It's worth noting that AUSTRAC will closely monitor the effectiveness of these measures and may adjust them as necessary.

Older Australians Disproportionately Targeted

Data gathered by AUSTRAC's task force reveals that the majority of individuals using cash to purchase cryptocurrency at ATMs are aged 50 or older, and this age group accounts for roughly 72% of the total transaction value. This startling statistic has set off alarm bells, as it suggests that older Australians are disproportionately preyed upon by scammers.

Scammers often use tactics to convince their targets to send money to a crypto ATM, under the guise of proving an investment or recovering stolen funds. Ultimately, these victims often remain unaware that they have been scammed until it's too late.

Raising Awareness: Reporting and Education

Australian Federation Police (AFP) Commander Graeme Marshall has emphasized the importance of reporting crypto ATM scams, addressing the issue of underreporting due to embarrassment or a lack of knowledge on how to seek help. Marshall encourages anyone who has fallen victim to a crypto ATM scam to inform their circle of friends and family.

According to the AFP, the low number of reports received (150 over 12 months) may only scratch the surface of the actual scope of crypto ATM scams in Australia.

The Rise of Crypto ATMs in Australia

Once a relatively scarce commodity, the number of crypto ATMs in Australia has grown exponentially, with the number increasing from 67 in August 2022 to nearly 1,820 by June 2025. Australia now ranks as the third-largest market for these machines worldwide.

With roughly A$275 million (US$178 million) in cash-based transactions flowing through these cryptocurrency ATMs over the course of a year, it's essential that appropriate measures are taken to safeguard users against scams. Private firms like Localcoin, Coinflip, and Bitcoin Depot lead the charge in this burgeoning market.

As the number of cryptocurrency ATMs proliferates, the opportunity for scammers to lure unsuspecting users increases. It's crucial that both operators and regulators remain vigilant in their efforts to prevent scams and protect users from financial loss.

Featured image from Gemini, chart from TradingView

Editorial Process

Enrichment Data:

• To combat crypto ATM scams targeting older adults in Australia, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has implemented several key regulations and measures: a. Transaction Limit: AUSTRAC has set a limit of AUD 5,000 (approximately US$3,250) on cash deposits and withdrawals at crypto ATMs. b. Enhanced Customer Due Diligence: Operators are required to enhance their customer due diligence obligations, ensuring proper verification and monitoring of transactions. c. Scam Warning Signs: Crypto ATM operators are mandated to display scam warning signs to alert users about potential scams. d. Robust Transaction Monitoring: AUSTRAC is requiring operators to implement more robust transaction monitoring systems to identify suspicious transactions. e. Registration and Compliance: AUSTRAC is emphasizing the importance of crypto ATM operators registering with the agency and implementing proper anti-money laundering (AML) and counter-terrorism financing (CTF) measures.
• Data showed that older adults, particularly those over 50, were disproportionately targeted by scammers using crypto ATMs. In fact, 72% of crypto transactions associated with scams involved users over 50.

1. The Australian Transaction Reports and Analysis Centre (AUSTRAC) is actively working to combat scams in the cryptocurrency industry, specifically focusing on crypto ATM operators.
2. AUSTRAC has introduced new regulations for crypto ATM operators since June 3, including a transaction limit of A$5,000 and enhanced customer due diligence.
3. Operators must now display scam warning signs, increase transaction monitoring, and bolster customer verification procedures under the new regulations.
4. AUSTRAC may extend these measures to crypto exchanges if they allow cash deposits for cryptocurrency.
5. Older Australians, particularly those over 50, are found to be disproportionately targeted by scammers using crypto ATMs, accounting for 72% of the total transaction value.
6. Scammers often use cryptocurrency investments or stolen fund recovery as pretexts to lure victims into sending money to crypto ATMs.
7. Australian Federation Police (AFP) Commander Graeme Marshall emphasizes the importance of reporting crypto ATM scams to combat underreporting due to embarrassment or lack of knowledge.
8. The low number of reports (150 over 12 months) received by the AFP may only represent a small fraction of the actual scope of crypto ATM scams in Australia.
9. As of June 2025, Australia has the third-largest number of crypto ATMs worldwide, with the number increasing from 67 in August 2022 to nearly 1,820.
10. It's crucial for operators and regulators to remain vigilant in preventing scams and safeguarding users from financial loss as the number of crypto ATMs proliferates.
11. Private firms like Localcoin, Coinflip, and Bitcoin Depot are leading the charge in the burgeoning market for crypto ATMs in Australia.
12. The financial industry, including finance, transportation, retail, and manufacturing, may be impacted by these crypto ATM scams, as well as the housing market and commercial real estate.
13. Venture capitalists, personal-finance investors, and wealth-management firms should be aware of these scams when investing in cryptocurrency or fintech companies.
14. The energy, aerospace, and automotive industries may also be affected, as cryptocurrency investments and transactions could be utilized for illegal activities.
15. Public-transit systems, banking and insurance, and personal-finance management must also focus on debris management and fraud prevention in the wake of these scams.
16. The education and self-development sector, particularly in STEM education and personal growth, should prioritize financial literacy and scam awareness.
17. Mindfulness practices, productivity techniques, and career-development resources can help individuals avoid falling victim to crypto ATM scams.
18. Online-education platforms can offer courses on cryptocurrency and how to identify and avoid scams for job-seekers interested in working in the industry.
19. General news outlets should cover the rise in crypto ATM scams to raise awareness and prevent more individuals from falling prey to these scams.
20. Crime and justice reporting should focus on the impact of crypto ATM scams on vulnerable populations, such as older Australians and those in the public transit sector.
21. Accidents related to crypto ATM usage, including car accidents, should be reported to authorities to ensure proper investigation and prevent future incidents.
22. Fires and other emergencies involving crypto ATMs should be addressed promptly to minimize damage and prevent further scams.
23. Life-long learning and skills training can help individuals understand and navigate the complexities of the cryptocurrency ecosystem and avoid scams in the future.

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